Warren Buffett singer: Following the words of top-flight investors is very important, especially when one of them is the behemoth of the investment universe, Warren Buffett. Today on CNBC, the “Wizard of Omaha” made three insightful points about J.C. Penney Company, Inc. (NYSE:JCP), Apple Inc. (NASDAQ:AAPL) and stock valuations in general.
There’s even a special performance by Mr. Buffett on ukulele.
Let’s start with Apple. Amid a request from another notable investor, Carl Icahn, who insists that Apple should buy back a significant amount of shares, Buffett said that he will pick the side of the company, and that Apple should not buy back shares, because he doesn’t think that “companies should be run primarily to please Wall Street and large shareholders who are going to sale.”
The CEO of Berkshire Hathaway also says that he loves JC Penney, but its main problem is that even though it tries to “get its act together” its competitors are doing the same thing. From this point, Buffett sides with Kyle Bass, who told CNBC last week that he thinks JC Penney will be able to stabilize its decline.
In Buffett’s opinion, stocks are not selling at bubble-level valuations. Buffett considers the stock market to be the most opportunistic place to invest your money in among all the major asset classes.
On a lighter note, investing is not the only talent of Mr. Buffett; he is also very skilled at the ukulele, which he showed off at Fortune’s Most Powerful Women Summit held yesterday, with the help of actress Glenn Close.